good question Simon... I hold IMU, because i beieve that there is some upside potential if they can get the product to the people that need it most in rural SA. Nutrition and water purfication etc good idea, but will they pull it off?? Tried sending them an e-mail with some of the questions i have and in addition those the forumites have raised. I got an error message back, undeliverable ????
An another confusion. These packs will retail at R220-R250, lets use R250. Removing vat leaves it at R220. Now how can they get an income of R180 from a sale of R220? They've got to give a margin to the retailer and surely R40 not enough? Then remember they also have to pay a sales force and marketing and cost of production. Then one talks about production, but the real deal is going to be sales?
both very good questions Simon has raised. There is no document detailing how exactly they plan to do what they want to do.. Abuzz, im sure theres a lot of upside "potential" but sometimes It feels like jumping in blind buying these shares, more like gambling.. cos there is soooo little information available and u cant really go by what the ceo says cos he is jst marketing his company... I think waiting for upside will be the best option... dont mind gaining 70% over a year instead of 100% if it means i know what im getting into...
Scandal - email Rudy Kruger should you require any further info, his mail address is [email protected] . He is very helpful and will either give you an answer, or forward it to one of the other members of the company for a response. Sometimes takes a couple of days, but you generally get an answer. Simon, I was just quoting the numbers given by the company, yes, I also feel there needs to be a bigger margin in it for them to sell through the pharmacies, so maybe they would have to discount it more or retail for more. I still don't see the pharmacy market as being their main revenue source for this product though, as it is aimed at rural communities and I would envisage it will be bought up by govt and other organisations for mass distribution through clinics and wellness centres.